Is Now a Good Time to Start a Small, Micro Business?

Here are 5 reasons why starting a business or side hustle right now might be the best thing you can do.

For so many, (and at the time of writing), September marks the beginning of a new term, a fresh start or a next chapter. But what of starting that dream business or side hustle? Perhaps you've been dreaming of additional income or a step away from the day job, but timing is always slightly out. It's easy to put off the 'leap' until it's less busy, there's more money in the bank or you're feeling less stressed. But in reality, the best way to start anything is to actually start.

When I say 'start', I'm not necessarily talking about heading to the bank for a sizeable loan, armed with a long and detailed business plan. I'm not talking about handing in your notice on day one either. Starting can be something much less dramatic.

For many, the idea of setting up their own small or micro business is the gateway to a new kind of freedom, the opportunity to live in a new location, a flexible way to provide for the family or the perhaps the fulfilment of a lifelong dream. In the first half of 2026, business registrations are up by 9% on the previous year, with over 92% of new businesses surviving their first year in the UK. In a world of increased costs of living, many are turning to additional income generation alongside the day job, again pointing to an increased entrepreneurial activity rate in Britain.

Maybe now is the time.

Absolutely not a comprehensive list, here are 5 reasons why now might be the best time to start a new business:

1. Getting clear on what 'starting' means - so often when people talk about starting a business, a picture is conjured of a brand new office or shop, expensively refurbished, with an 'open' sign on the door and a sense that this is an 'all in' situation. For so many this couldn't be further from the truth. All great businesses start with an idea, and a well researched one at that. Mine started with a whole notebook full of ideas that had taken 2 years to fill. Re-aligning your thinking on what 'starting' could look like for you might be the first step to help you do just that - start. This could look like:

   1. padding out the ideas, researching and refining

   2. researching the market & what potential customers really want

   3. deep diving into your own finances so you know what your safety net is

   4. preparing yourself mentally for a change in life

   5. polishing up credentials and experiences to help you feel more ready

   6. identifying realistic set up costs so you can begin to save

   7. reviewing who might be out there to help you at set up phase

2. It's easy to start in the UK - despite lots of content out there about the costs of doing business in the UK, and it's not cheap, in fact, setting up is a fairly simple and low cost exercise. You can earn up to £1000 as a sole trader before registering with HMRC for a UTR (Unique Tax Reference) number which is quite a lot if you're testing the market as a side hustle to your day job. Even setting up a Ltd company is not overly complicated. Head to the government website to find out more. There are also few regulations for many business types, around setting up a business. Check out what compliance and insurances you need for sure, but for many, it's a case of just starting.

3. Digital life means an easy(ier) life - when I start my first business there were no Facebook pages or social channels to promote a business and I remember sending off cheques to magazines to place small ads! But digital transformation is now allowing a much easier flow into business start up than ever before. Not only are there free social media platforms on which to promote what you do, but there is a wealth of great business advice (there's a lot of rubbish too!) online too, to help you avoid pitfalls and feel more confident. With the advent of AI, there's also never been an easier time to create an app, build a website or create good quality content. Beware however, that the heart of a great business is avoiding being 'same same' and getting professional help to set up some of these channels professionally & individually, will set you at an advantage.

4. The world needs small and micro - despite a fetishisation of 'big is better' in the media, business in the UK is actually 95% micro in size (0-9 employees) who are a fundamental cog in the business supply chain of success across the country. From great independent shops that keep high street communities alive to freelance experts who support others to succeed, evidence shows us that working with or buying from a small micro business is what many people really want. Don't assume that because your business is going to start at the kitchen table or in the garage, that it lacks significance. What's really needed is human led, values driven, sustainable, service forward businesses that create an eco system of change for everyone.

5. There is (actually) money to be spent - it's easy to think that now isn't a good time to start a business because 'no one has any money to spend'. As I sit and write in a buzzing independent cafe, full of people buying expensive coffees and laughing together, I can attest that for the right thing or service, there is money to be spent. The key here is to ensure that whatever business you set up, there is clear 'value' in what you offer so that potential customers can prioritise their spend on your business. Micro businesses that are focussed on the difference they make to their customers lives and how they a helping change experiences, will be best served to find customers who will part with money. In fact there is many an expert who says that starting up when times are tough provides the best opportunity to bootstrap, economise and get super focussed on the value.

If you are looking to start a micro business, then you might like to explore our new Start a Micro Business Programme. This 12 step, self paced programmes takes you through the fundamentals of business start up, backed by 25 years of lived and business experience and 2 decades of business support work.

About the Author

Emily Whitehead is a micro business owner of nearly 25 years and has been running her own coaching consultancy for nearly 20. MBA writer and teacher, founder of Simply Club and coach and trainer with multiple business schools and national business support programmes, Emily has a wealth of real life and theoretical experience to share with business founders, owners and leaders. You can meet Emily over on LinkedIn too.